Performance-Based Logistics is a strategy that optimizes total system availability while minimizing cost and logistics footprint. Trade-off decisions involving cost, useful service, and effectiveness shall consider corrosion prevention and mitigation. Sustainment strategies shall include the best use of public and private sector capabilities through government/industry partnering initiatives, in accordance with statutory requirements. [1]

“Program Mangers are required to develop and implement performance-based logistics strategies that optimize total system availability while minimizing cost and logistics footprint.” DoD Directive 5000.01

Contracting for performance based logistics is a multiple step process that can be applied to new, modified or legacy systems. The process is detailed on the web-based Performance-Based Agreement Toolkit as a best practice.

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